Civil Services Prep

Prelims 2012 · Economy · Question 84

Despite having large reserves of coal, why does India import millions of tonnes of coal?<br/>1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.<br/>2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.<br/>3. Steel companies need large quantity of coking coal which has to be imported.<br/><br/>Which of the statements given above is/are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer

2 and 3 only

1. Incorrect. India does not follow a policy of deliberately conserving domestic coal by importing for current use. Imports happen mainly due to supply gaps and quality requirements, not such a stated policy.

2. Correct. A large share of India’s electricity is coal-based, and domestic production/logistics have often been insufficient to meet total demand of power plants.

3. Correct. Indian steel plants require coking coal, and domestic reserves of good-quality coking coal are limited; hence substantial imports are necessary.

Therefore, 2 and 3 only are correct.

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